Working Paper: NBER ID: w1650
Authors: Mark Schankerman; Ariel Pakes
Abstract: This paper examines the distribution of the values of patent rights in the United Kingdom, France, and Germany during the post-1950 period. These values are inferred from the behavior of patentees with respect to payment of renewal fees on their patents. A simple economic model of renewal decisions is combined with data on the proportion of patents renewed at alternative ages and the renewal fee schedules to produce estimates of the distribution (and the total) value of patent rights in these countries. Moreover, the data indicate that there have been changes in the value distribution, and we follow these changes over the period. The empirical results of particular interest concern: the total value of patent rights and the relationship between changes in it and changes in the quantity of patents, the skew in the distribution of patent values, and the rate of obsolescence on the returns to patents.
Keywords: patent rights; economic value; renewal fees
JEL Codes: O34; K41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| quantity of patents (O34) | mean value of patents (O34) |
| mean value of patents (O34) | quantity of patents (O34) |
| quantity of patents (1955-1965) (O34) | mean value of patents (decrease) (O39) |
| quantity of patents (1965-1975) (O34) | mean value of patents (increase) (O39) |
| distribution of patent values (D39) | concentration of patents with low economic value (K11) |
| distribution of patent values (D39) | presence of patents with significantly higher values (O34) |